Terayon May Lay Off Up to 50%

Battling through a tough market that has pummeled its partners andcompetitors alike, Terayon Communication Systems Inc. will lay off between 35percent and 50 percent of its staff within the next two weeks, sources familiarwith the situation said, according to CED magazine.

At the end of 2002, Terayon employed 487 people worldwide, handling productlines such as cable modems, cable-modem-termination-system equipment anddigital-video gear.

It wasn't immediately clear how the layoffs would impact Terayon's differentdivisions.

A Terayon spokesman would not comment specifically about any imminent layoffsat the company. "We are always looking at the state of the business and theeconomy," he said. "We make decisions based on that. There's nothing that we'reannouncing at this time."

A source familiar with the situation at Terayon said the decision to cutstaff is due to an overall slow market, but it was particularly tied to thecable industry's slow migration to Data Over Cable Service InterfaceSpecification 2.0.